JUDGMENT

Ruma Pal, J.-The respondent-assessee manufactures various items such as Fork Lift Trucks, lifting tackles, trolleys, conveyors and measuring instruments such as gauges/templates for being utilised captively in the manufacture of their final products. They claimed exemption from payment of excise duty under Notification No. 217/86-C.E., dated 2nd April 1986 for the period 1986-1995.

2. The notification in so far as it is relevant reads as follows :

"The Central Government hereby exempts goods specified in column (2) of the Table hereto annexed (hereinafter referred to as `inputs ) manufactured in a factory and used within the factory of production, in or in relation to the manufacture of final products specified in column (3) of the said Table, from the whole of the duty of excise leviable thereon which is specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);

Provided that nothing contained in this notification shall apply to inputs used in or in relation to the manufacture of final products which are exempt from the whole of the duty of excise leviable thereon or is chargeable to nil rate of duty.

Explanation-For the purposes of this notification, input